Your driving record can rob your pocket! Know how
You are shocked, right? Driving is everyone's hobby, but this hobby can be heavy on your pocket, that too because of your driving record! Yes, today we are talking about car insurance, the amount of which is directly related to your driving record.
So what is this whole affair?
Let us tell you that car insurance companies decide many things keeping in mind. One of the most important things among these is your driving record. Insurance companies use it to understand your risk in terms of driving.
Think, what kind of attitude do you keep while driving? Do you follow traffic rules? Do you ever drive at high speed? Have you ever had your license (challan) cancelled? Have you ever been involved in an accident?
The answers to all these questions determine your driving record. And this record also determines your insurance amount!
Now understand how!
Suppose you always follow traffic rules, never drive at high speed and your driving record is clean. In such a case, the insurance company will consider you a low-risk driver. As a result, you will have to pay a lower premium on insurance.
But wait! The story does not end here!
If you break traffic rules, drive at high speed or have ever been involved in an accident, then your driving record becomes bad. In such a case, the insurance company will consider you a high-risk driver. The result will be that you will have to pay a higher premium on insurance! How high this premium will be depends on the severity of your driving record.
Let us understand this with an example
Suppose your friends are Rahul and Rani. Rahul always follows traffic rules and has a clean driving record. Rani, on the other hand, often drives at high speed and has lost her license. In such a situation, Rahul will have to pay a much lower premium on his car insurance than Rani!
These challans can increase your insurance premium!
Now we will know which traffic challans can increase your insurance premium. So get ready, because this information can prove to be very useful for you.
1. Overspeeding :
This is the most common traffic challan. If you drive at high speed, then a challan can be deducted on your license. And this challan can also increase your insurance premium. Actually, driving at high speed is the biggest cause of accidents. Therefore, insurance companies consider such drivers as high risk.
2. Drunk driving
This is a very serious offense. If you drive after drinking alcohol and are caught, then a heavy fine can be imposed on your license. Along with this, your insurance premium can also increase significantly. Driving after drinking alcohol is the biggest cause of accidents. And insurance companies consider such drivers a very high risk.
3. Driving without a license
If you drive without a license and are caught, then a challan can be cut on your license. Along with this, your insurance premium can also increase. Driving without a license is also a serious offense. And insurance companies also consider such drivers as high risk.
4. Signal Jump:
If you jump the signal and are caught, then a challan can be cut on your license. Along with this, your insurance premium can also increase. Signal jumping is a major cause of accident. Therefore, insurance companies also consider such drivers as high risk.
5. Driving on a red light:
If you drive on a red light and are caught, then a challan can be cut on your license. Along with this, your insurance premium can also increase. Driving on a red light is also a major cause of accident. Therefore, insurance companies also consider such drivers as high risk.
6. Overloading:
If you drive your vehicle with excess luggage, then a challan can be issued on your license. Along with this, your insurance premium can also increase. Overloading reduces the capacity of the vehicle and increases the risk of accident.
7. Driving without seat belt:
If you drive without a seat belt and are caught, then a challan can be issued on your license. Along with this, your insurance premium can also increase. Seat belt protects you from serious injuries at the time of accident.
8. Overtaking in the wrong way:
If you overtake in the wrong way and are caught, then a challan can be issued on your license. Along with this, your insurance premium can also increase. Overtaking in the wrong way is a major cause of accident.
Has your insurance premium increased? Here are the ways to reduce it
If your insurance premium has increased, there is no need to be disappointed. You can adopt some ways to reduce it.
1. Improve your driving record:
As we saw in the previous chapters, your driving record affects your insurance premium. If you have a bad driving record, you can try to improve it. For this, you should follow traffic rules, do not drive at high speed and avoid accidents. If you drive without any challan for a few years, your insurance premium may come down.
2. Take care of your vehicle's safety features:
Some vehicles have safety features that help avoid accidents. If your vehicle has such features, insurance companies may consider you a low-risk driver. As a result, you will have to pay a lower premium on insurance.
3. Take care of your vehicle maintenance:
If you maintain your vehicle regularly, you can avoid accidents. Insurance companies also consider well-maintained vehicles as low risk. Therefore, get your vehicle serviced and repaired regularly.
4. Park your vehicle in a safe place:
If you park your vehicle in a safe place, you can protect it from theft or vandalism. Insurance companies also consider such vehicles as low risk. Therefore, always park your vehicle in a safe place.
5. Change insurance company:
If your insurance premium is too high, you can change the insurance company. Different insurance companies charge different premiums. Therefore, you can compare different insurance companies available in the market and choose the company with the lowest premium.
6. Reduce insurance coverage:
If you are taking a lot of coverage for your vehicle, you can reduce it. This can reduce your insurance premium. However, keep in mind that taking too little coverage can also harm you. So, choose the coverage according to your needs.
7. Ask about discounts:
Many insurance companies offer different types of discounts. For example, if you take insurance for more than one vehicle from the same company, you may get a discount. You can ask your insurance company what discounts you can get.
How to claim insurance? What documents are required?
If your vehicle has been involved in an accident or has been stolen, you can claim from the insurance company. The process of claiming insurance is something like this:
1. Report the incident:
If your vehicle has been involved in an accident, first of all, file a report of the incident with the police. After this, you should also inform your insurance company about the incident. You can also report the incident through the mobile app or website of your insurance company.
2. Submit documents:
To claim insurance, you have to submit some documents. These documents may include:
- Vehicle Registration Certificate (RC)
- Vehicle Insurance Policy
- Police Report
- Vehicle Repair Bill (if the vehicle has been repaired)
- Theft Report (if the vehicle has been stolen)
- Photos of the vehicle (if the vehicle has been damaged)
3. Contact the insurance company:
After submitting the documents, you can contact your insurance company. You can visit your insurance company's customer care centre or call them.
4. Vehicle Inspection:
The insurance company may inspect your vehicle. This inspection is done to ensure that you have given the correct details of the vehicle and filed the correct damage report.
5. Complete the claim process:
The insurance company will examine your claim and then pay you. The time of payment depends on the policies of the insurance company.
Some important points:
You have to follow the time limit to make a claim. If you do not file a claim within the time limit, your claim may be rejected.
Keep in touch with your insurance company. This can speed up the claim process.
If your claim is rejected, you can appeal.
Why can an insurance claim get rejected?
There are many reasons why an insurance claim can get rejected. Some of the common reasons include:
1. Incorrect information:
If you have provided incorrect information to the insurance company, your claim can get rejected. For example, if you have not provided the correct information about your vehicle or have given incorrect details about the incident, your claim can get rejected.
2. Claim deadline expired:
If you have not filed a claim within the deadline, your claim can get rejected. Every insurance company has a deadline to file a claim. If you do not file a claim within this deadline, your claim will get rejected.
3. Lack of documents:
If you have not submitted all the required documents, your claim can get rejected. For example, if you have not submitted a police report or a vehicle repair bill, your claim can get rejected.
4. Fraud:
If you have made a claim fraudulently, your claim may be rejected. For example, if you have intentionally damaged the vehicle and then made a claim, your claim will be rejected.
5. Lack of insurance coverage:
If you have not taken adequate insurance coverage for your vehicle, your claim may be rejected. For example, if you have only taken third party insurance and your vehicle is damaged, your claim may be rejected.
6. Violation of insurance policy terms:
If you have violated the terms of your insurance policy, your claim may be rejected. For example, if you have allowed another person to drive your vehicle without the permission of the insurance company, your claim may be rejected.
